Home sales down as interest rates rose at the end of 2023
According to the local real estate board, the city’s housing market is still lacking in inventory, something they are lobbying to change.
Wes Case, the president of the Thunder Bay Real Estate Board, said the local board is reaching out to various levels of government.
“As a real estate board, we’ve lobbied both the local MPPs and MPs, as well as our mayor. I’m just trying to collaborate and help them any way we can to try and get more homes built.”
The current housing market in Thunder Bay is still a “seller’s market,” meaning there are fewer dwellings for potential buyers to look at and choose from.
“I think nationally and locally, we have a housing supply concern until they really start to get more homes built,” Case said.
“I think it’s really going to be hard to predict how fast that will change.”
Case noted by the end of 2023, the average price of a single family house in Thunder Bay had gone up by about three per cent. He also said sales were down in 2023 compared to 2022 by 14 per cent.
The average house in Thunder Bay cost approximately $320,000 in 2023 according to the Thunder Bay Real Estate Board. – tbnewswatch.com
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Its the price, not the interest rate. Interest rates always have been much higher. House prices are insanely high. I can’t believe that in a city surrounded by sooo much land, that a reasonably sized house cannot be built for under $320,000. Houses do not have to be multi-thousand square feet mansions. They can be less than half of that size and still contain 2 bedrooms, kitchen/dining area ,living room and laundry. No basement required. Developers are not building houses that are affordable.($150,000 or less) They build houses that create the most profit.
Think of it this way. A company can sell many more televisions at a lower price but choses to sell fewer but at a higher price. Sane profit in the end.
Look at the houses that existed in this city prior to 1960. The baby boom era. Entire neighbourhoods where houses were almost identical. Slight variance in design but the same basic floor plan. THAT is what we need today.
What is driving up house prices? Low interest rates. Yes, low interest rates. Interest rates in savings accounts in banks is almost zero. People are buying property not for living in but as investments. Rental property. THAT is driving up house prices as well. Limited inventory and investors chasing high returns.
Of course, there is also the fact that governments benefit from high property values. Taxes and fees are all based on the value of property. Sooo governments have little incentive to lower property prices.